Stock Price & Analysis

Based on the recent data and market analysis, here's a concise assessment of MELI stock:

Technical Analysis

The stock has shown strong upward momentum, with recent price action indicating bullish sentiment. After a significant rally from January lows around $1,500 to current levels above $2,200, MELI has demonstrated robust price strength.

Fundamental Strengths

• Strong Q4 2024 performance with revenue beating expectations at $6.06 billion vs. $5.88 billion estimated
• Unique active buyers increased 24% year-over-year to 67.3 million
• Assets under management exceeded $10 billion for the first time
• Successful expansion of logistics network with six new fulfillment centers

Recent Catalysts

• New Street Research upgraded MELI to Buy with a $2,300 price target, citing favorable macroeconomic conditions in Argentina and improving credit metrics
• Strong Q4 e-commerce trends and successful Cyber Monday performance
• MELI+ loyalty program showing positive impact on user engagement

Risk Factors

• Trading at premium valuation with P/S ratio of 4.11x vs. industry average of 1.91x
• Potential margin pressure from strategic investments in logistics and credit portfolio expansion
• Macroeconomic uncertainties in key Latin American markets

Recommendation

Based on the strong fundamental growth, improving operational metrics, and positive analyst sentiment, MELI stock appears positioned for continued upside. The current pre-market price of $2,279.7 still offers potential for growth given the company's market leadership and execution. Consider buying with a medium to long-term investment horizon.

Based on the provided data and recent market analysis, here's a price prediction for MELI stock in 2025:

MercadoLibre (MELI) is expected to reach $2,500-2,700 by end of 2025, driven by strong e-commerce growth in Latin America and expanding fintech operations. The company's successful strategic investments in logistics infrastructure and credit portfolio expansion, coupled with improving macroeconomic conditions in key markets like Argentina, support this bullish outlook.

The stock has demonstrated remarkable momentum, with Q4 2024 earnings nearly quadrupling year-over-year and unique active buyers growing 24% to 67.3 million. Technical analysis shows strong upward momentum with the stock trading well above its major moving averages, suggesting continued bullish sentiment.

The S1 support level for MELI Stock is $2017.76 ,The R1 resistant level for MELI Stock is $2306.95.

As of the end of day on 2025-02-26, the price of MELI Stock was $2176.73.

The target price for MELI Stock according to analyst rating is 2,267, with the highest price target at 2,500 and the lowest at 1,950. Analysts have a Strong Buy rating on MELI Stock overall.

The market cap of MELI is $109.9B.

Based on the provided data and recent market developments, here's a concise analysis of MELI's valuation:

Current Valuation Metrics:

• P/E ratio of 60x is significantly higher than peer average of 22x
• EV/EBITDA of 32.9x for FY2023, up from 29.5x in 2022
• Price/Sales of 5.54x for FY2023, increased from 4.12x in 2022

Growth & Performance:

• Revenue grew 39.8% YoY to $3.8B in Q3 2023
• Net income surged 178.2% YoY with margins improving from 11% to 18.2%
• Strong fintech segment growth with Mercado Pago reaching 49M monthly active users

Technical Analysis:

• RSI at 78.60 indicates overbought conditions
• Trading near upper Bollinger Band with BBP at 0.93
• Currently at $2,279.7, significantly above all major moving averages

Overvaluation Indicators:

• Trading 90.3% above intrinsic value according to DCF analysis
• Current P/E ratio (60x) is nearly triple the peer average
• Recent price surge of 172% from 2022 lows
• Technical indicators suggest overbought conditions

Mitigating Factors:

• Strong market position in Latin American e-commerce
• Continued expansion in fintech and advertising segments
• Improving operational efficiency and margins
• Significant growth potential in Latin American market

Based on these factors, MELI appears overvalued at current levels, despite strong business fundamentals and growth prospects. The combination of stretched valuation metrics, technical overbought conditions, and significant premium to intrinsic value suggests caution is warranted at current price levels.

Mercado Libre Inc is a Uruguay-based e-commerce business facilitator of Argentinian origins. The e-commerce products enable retail and wholesale via Internet platforms designed to provide users with a portfolio of services to facilitate commercial transactions. The Company's geographic coverage includes 18 countries of Latin America. The primary offer is an ecosystem of six integrated e-commerce services: the Mercado Libre Marketplace, the Mercado Libre Classifieds service, the Mercado Pago payments solution, the Mercado Credito financial solutions, the Mercado Envios logistic solutions including shipping, the Mercado Ads advertising platform and the Mercado Shops digital storefront solution.

Based on the provided data and recent market developments, here's a detailed price prediction for MELI stock by 2030:

MercadoLibre's stock is projected to reach $3,800-4,200 by 2030, driven by its dominant position in Latin American e-commerce and fintech sectors, with strong Q4 2024 performance showing 44% commerce revenue growth and fintech revenue up 29%. The company's expanding user base of 67.3 million active buyers (24% YoY growth) and successful credit card business crossing $10 billion in assets under management demonstrate robust fundamental growth.

Recent analyst actions support this bullish outlook, with B of A Securities raising their price target to $3,000 and maintaining a Strong Buy rating, suggesting a 32.74% near-term upside potential. The company's strategic investments in logistics infrastructure and successful MELI+ loyalty program implementation are expected to drive sustained growth through 2030.

The prediction considers MercadoLibre's strong market position against competitors like Amazon and Walmart in Latin America, improved operational efficiency, and expanding fintech services. The company's demonstrated ability to maintain high growth rates while improving profitability margins suggests continued strong performance through 2030.

MELI has a total of 58313 employees.